Equity Research Report on DLF Ltd

Overview: DLF Ltd, founded in 1946 by Chaudhary Raghvendra Singh, is primarily engaged in the business of real estate development. The company has a unique business model involving earnings from both development and rentals. Over the years, DLF has diversified into infrastructure, SEZ, and hotel businesses. They operate in all aspects of real estate development, from land acquisition, planning, execution, and construction to the marketing of projects. Additionally, the group is involved in power generation and transmission, maintenance services, hospitality, and recreational activities. DLF's business is organized on an SBU (Strategic Business Unit) basis, with the Homes SBU catering to three segments of the residential market: Super Luxury, Luxury, and Mid-Income, offering a variety of products including condominiums, duplexes, row houses, and apartments.

Development Potential: Strategically located land bank at low carrying cost to enable steady and sustainable growth.

Launch Calendar: Launched products to continue enhancing value with FY25 launch pipeline worth Rs 36,000 crore.

Product Mix: Launching products across multiple segments and tapping multiple micro- markets including Super Luxury, Luxury, Premium, and Commercial projects.

Financial Highlights: Stock Performance: 52 Week H/L (Rs.): 462.3 / 967.6 Market Cap (Cr): 203,408.74 Share Out/Float (Cr): 248 / 61.45 Dividend Yield (%): 0.59 BSE Code: 532868 NSE Code: DLF

Shareholding Pattern (March 2024): Category Percentage Promoters 74.08% FIIs 16.53% DIIs 4.77% Public 4.62%

Financial Summary (in Cr):

Particulars FY23 FY24 Net Revenue 6,012 6,958 YoY Growth % (2.03) 15.73 EBITDA 2,043 2,655 EBITDA Margin % 34% 38% PAT 1,101 1,630 YoY Growth % 30.60% 48.04% ROE % 4.43% 5.43% ROCE % 5.40% 6.91% EPS (Rs.) 8.22 11.02 P/E 15.52x 34.6x P/B 2.34x 5.64x

Quarterly Results:

Particulars Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Revenue Growth (%) (2.59) (2.25) (5.3) 12.88 40.33 EBITDA 518 495 591 633 936 EBITDA Margin % 35.57 34.78 43.87 41.61 43.84 EBIT 481 458 554 595 899 EBIT Margin (%) 33.03 32.18 41.12 39.11 42.1 Net Profit 284 272 351 376 630 Net Profit Margin (%) 19.5 19.11 26.05 24.72 29.5 EPS 2.3 2.13 2.52 2.65 3.72

Annual Result Snapshots: Profit & Loss:

Particulars FY 24 FY 23 % Change YoY Revenue from Operation 6,427 5,695 13% Cost of Sales 2,794 2,434 15% Gross Margin 3,634 3,261 11% Gross Margin % 57% 57% - Other Income 531 317 67% Staff Cost 546 548 - Other Expenses 964 987 -2% EBITDA 2,655 2,043 30% EBITDA % 38% 34% - Finance Cost 356 392 -9% Depreciation 148 149 -1% PBT before Exceptional items 2,151 1,502 43% Tax (Deferred Tax) -520 -402 30% PAT 1,630 1,101 48% Balance Sheet: Particular As on March 2024 As on March 2023 Non-Current Assets 27,703 28,157 Current Assets 32,559 25,771 Total Assets 60,262 53,928 Equity 39,432 37,692 Non-Current Liabilities 6,690 5,051 Current Liabilities 14,141 11,185 Total Liabilities 60,262 53,928 Peer Comparison:

Company Market Cap (Cr.) 1Y Return TTM P/E ROE (%) ROCE (%) Net Profit (Cr.) Debt to Equity DLF Ltd. 2,03,408.74 78.18% 74.59 6.91% 5.43% 1,630 0.12 Godrej Properties Ltd. 75,848.32 103.05% 104.6 7.25% 8.28% 719 1.07 Oberoi Realty Ltd. 75,853.88 86.98% 34.69 13.91% 13.64% 1,917 0.18 Sobha Ltd. 17,831.02 241.14% 362.93 1.95% 10.02% 49 0.76 Prestige Estates Projects Ltd. 61,105.35 234.72% 35.89 5.12% 8.83% 1,050 0.81 Conclusion: DLF Ltd. continues to show robust growth across various financial metrics, with strong quarterly and yearly performance, a diversified product mix, and strategic development priorities positioning the company well for sustained future growth.